Saudi Arabia Companies Must File UBO Disclosure Annually
The Ministry of Commerce in Saudi Arabia has introduced penalties to companies that fail to disclose their UBO information or fail to submit the required annual confirmation. The UBO declaration and the initial Beneficial Ownership rules were introduced as a requirement in Saudi Arabia in 2025. Subsequent changes were introduced with specific penalties for non-compliance in February 2026.
Where in the UAE, UBO disclosure is a mandatory requirement as part of the incorporation process, companies generally cannot complete the incorporation process without having completed the UBO filing.
In Saudi Arabia we have found that the distinction here is that while companies are required to file the UBO information at the time of incorporation, the company must also confirm or make updates to the UBO information at the time of the Commercial Registration (CR) renewal. It is important to note that UBO registration and annual confirmations have no charge but failing to submit this information on time can result in hefty fines for the business.
Violations are penalized based on number of offenses. For example, the first violation means the company will receive a warning and be given 30 days to rectify the non-compliance. However, the company ignores this request, and no changes are made within the 30-day period, the company will be charged the following penalty based on the company’s relevant share capital.
- Below SAR 500K – SAR 4K penalty
- SAR 500K – 2.5 million – SAR 20K penalty
- Above SAR 2.5 – 5 million – SAR 40K penalty
- Above SAR 5 million – SAR 80K penalty
For repeated violations within a one-year period from the previous violation, the previous fine shall be doubled up to a maximum of SAR 500K penalty amount.
For existing companies in Saudi Arabia that were incorporated before the UBO regulations or penalties for non-compliance were introduced, check that you have completed the required filing. If not complete, your business could be subjected to fines. For new companies entering the Saudi market, this notice is to bring you awareness that UBO filing is now a mandatory part of the incorporation process.
All companies in Saudi Arabia must ensure that any changes to ownership structures or parent company information are reflected in their local UBO records.
For more information of penalties, visit the Ministry of Commerce website:
وزير التجارة يصدر قرارًا بشأن مخالفة عدم الإفصاح عن بيانات المستفيد الحقيقي
